1/11StrategicAnalysisonSamsungElectronicsⅠ.BriefIntroductionSamsungGroupisadiversifiedgroup,withoperationsinvarioussectorssuchaselectronics,financialservices,chemicalsandinfrastructure.Samsunghasoperationsacrosstheworld.ItisheadquarteredinSeoul,SouthKoreaandemploysabout276,000people.SamsungElectronicswasfoundedin1969inSouthKoreawithSamsungGroupasitslargestshareholder.10yearsago,thebrand“Samsung”wasjustasymbolforcheapelectricalapplianceamongconsumersbutnowitbecomesoneoftheleadersinhigh-techdigitalproducts.In1992,SamsungElectronicsbeganmanufacturinginChina.SamsungsetupSEHCinHuizhou.Sincethen,SamsunghasbeeninvestinginChinaandkeepingcooperatingwithoperationsinChina.Nowadays,ChinaisthecountrywhichSamsungputmainmoneyinto.Ⅱ.StrategicEnvironmentAnalysisi.ExternalEnvironmentofSamsung1.GeneralEnvironmentAnalysisThegeneralenvironmentofSamsungincludesfourterms:Political/legalsegment:Astablepoliticalenvironmentshouldbeformedforacompany,asthesituationwillprovideastabledevelopmentenvironment.Forexample,in2006Chinahasbroughtsomenewpoliticaldecisions.Oneistoprotecttherightsofconsumers;theotheristopromotethecompetitionenvironmentwhichismoreequitable.Astothelegalforce,New“TelecommunicationLaw”isdraftingoutandthislawincludeslotsofconstraintarticlesforelectronicindustry.ForSamsung:TheenvironmentcouldmakeSamsungchangeitsmarketintomorestablecountriessuchasChina.Andnewcompetitionpolicywouldletitchangeits2/11strategyincompetitionespeciallyinprice.Economicsegment:Globaleconomichasalreadycameintotardinessphase,problemsofhighpriceofoil,globalimbalanceandtheincreaseofhighpublicliabilityofdevelopedcountrywouldmaketheeconomicinstable.Thefinancialcrisishappenedin2008hasalreadyprovedthis.However,theGDPofwholeworldincreaseintensively.Thismightimpactanorganizationinlotsoftermssuchassupplierandcustomer.InChinaeconomicincreasedintensivelyduringthelastfewyears.GDPofChinanearlyupto10.1%in2010.ThustheenvironmentofeconomicenvironmentinChinaisgoodfororganizations.ForSamsung:Itwouldbeimpactedheavilyfromthedecliningofglobaleconomic,however,inChina,stableandincreasingmarketwouldletSamsungputmorefocusonit.AndthepriceofSamsung’sproductsshouldbechangedforthedifferentconditionofthedifferentcountries.Technologicalsegment:Generallyspeaking,technologynowadayscouldbedescribedashugenewtechnologycomingforth,especiallyinglobalinformation.Andthepaceismoreandmorefast.Theamalgamationofinformationsciences,lifesciences,mattersciencesandcognitivesciencesmadeinformationtechnologyusedinmoreareas.Demographicsegment(inChina):Wecanunderstandthedemographicdistributionfromthetablebelow:GrossPercentCity66557530649.68County67414954650.32Male68685257251.27Female65287228048.73Age0-1422245973716.603/1115-5993961641070.14Olderthan6017764870513.26Sum1370536875Fromthetablewecouldseethatpopulationincountiesislargerthanincities,maleandfemalenumbersareapproachingtoabalanceandthelargestamountofpeoplearelocatedbetweenage15to59.ThismeansmorepotentialmarketsareengenderingbytheincreasingofpeopleinChina.ThegovernmentofChinaalsodoeshisbesteffortonpublicsanitationandspeedupthedevelopmentofeducationtheseyears.Asaresult,thepeoplequalityinhealthaspectandeducationaspectbothincreasequickly.ForSamsung:HugepopulationgivesSamsunglotsofnewopportunities.Asanelectronicindustry,Samsungputmostofitsmarketinareaswhichhashighearningssuchasbigcities.MorepeopleincitiesthanbeforewouldenrichSamsung’smarket.Also,potentialmarketandpotentiallabormarketwouldbegivensincetheincreasingofcitypopulation.2.IndustryEnvironmentAnalysisPorter’sFive-ForcesModelofIndustryCompetition4/11Specifically,theindustryenvironmentofSamsungalsoincludesfourterms:Threatsofnewentrants:Asweallknow,therearelotsoforganizationsdobusinessinelectronicindustryandthismarkethadalreadysaturation.Electronicproductionneedshighcost,sothestrengthofentrybarriersisveryhuge.Inthiscaseitisnotsoeasyforotherorganizationstoenterthisindustry.Inaddition,intheareaofappearancefeworganizationscoulddobetterthanSamsungandthismakeSamsunghasalargeamountofloyalconsumers.Threatofsubstituteproduction:ThesubstituteproductionofSamsung’selectronicproductioninChinaincludesNokia,Moto,Sony,LG,Siemens,TCLandsoon.LGandTCLcouldnotimpactSamsungheavilybecausethefeaturesofPOTENTIALENTRANTS:astothestrongstrengthofentrybarriersinelectronicindustry,therecan’tbemanynewentrantsdevelopingsofastinashorttime.CUSTOMERS:smallbargainingpowerofcustomers.SamsungshouldkeepimprovingitstechnicalR&Dcapabilitiestogainsustainableuniqueness.SUPPLIERS:mainstrategicpartnershipbetweensuppliersisjointR&Dandtechnologytransfer.SUBSTITUTES:easilycanbesubstitutedbyothernewelectronicproductsINDUSTRYCOMPETITORSRivalryAmongExistingFirms:NOKIASONYSiemensBargainingpowerofsuppliersBargainingpowerofcustomersThreatsofsubstituteproductsorservicesThreatsofnewentrants5/11theseorganizations’productshavenotcatchupwithSamsung’snowandeveninthefuturefewyears.WhichcouldbethreatstoSamsung’selectronicproductionactuallyareNokia,MotoandSony.Theseorganizations’productshavewonderfulfeaturesandtheirownloyalcustomers.Bargainingpowerofsup